
*GRAPH 2.4: trade cost and trade taxes  
use "TEMP/Master.dta"  , clear

 
* drop Magreb
 drop if     UN_N==1

gen tax_trade_real = TRADE_TAXES_NOMINAL / WAGES / POPULATION

gen years_preWW1=	1 if year >= 1910 & year<1914 

collapse (mean) tax_trade_real tradecost  (first) iso , by(years_preWW1 cow_num)

keep if  years_preWW1==1

gen ln_tradecost=log(tradecost)

scatter tax_trade_real ln_tradecost 

gen ln_tax_trade_real=log(tax_trade_real)

  
graph twoway (lfit tax_trade_real ln_tradecost) (scatter tax_trade_real ln_tradecost, mlabel(iso) )  , 	xtitle("Log(tradecost)")	 ytitle("Real trade taxes in labor days p.c. (1910-1913)")	bgcolor(white) graphregion(color(white))  legend(order(1 "Linear fit"  2 "ISO code") size(small) col(2) ring(100) position(6)  region(fcolor(white)))  



			graph export   "Output/Graphs/Appendix/APP_FIG_2_4a.pdf", replace
			
			
*GRAPH 2.4: trade cost and trade taxes  
use "TEMP/Master.dta"  , clear


* don't drop Magreb
 

gen tax_trade_real = TRADE_TAXES_NOMINAL / WAGES / POPULATION

gen years_preWW1=	1 if year >= 1910 & year<1914 

collapse (mean) tax_trade_real tradecost  (first) iso , by(years_preWW1 cow_num)

keep if  years_preWW1==1

gen ln_tradecost=log(tradecost)

scatter tax_trade_real ln_tradecost 

gen ln_tax_trade_real=log(tax_trade_real)

label var ln_tradecost "ISO code"


  
graph twoway (lfit tax_trade_real ln_tradecost) (scatter tax_trade_real ln_tradecost, mlabel(iso) )  , 	xtitle("Log(tradecost)")	 ytitle("Real trade taxes in labor days p.c. (1910-1913)")	bgcolor(white) graphregion(color(white))  legend(order(1 "Linear fit"  2 "ISO code") size(small) col(2) ring(100) position(6)  region(fcolor(white)))  


			graph export   "Output/Graphs/Appendix/APP_FIG_2_4b.pdf", replace
